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Handling Differences Between Finished Goods and Raw Materials in a Just-In-Time System
raw materials

In the modern logistics world, especially those implementing a Just-In-Time (JIT) system, the handling of commodities plays a crucial role in determining supply chain efficiency. Two common types of commodities in this scheme are Finished Goods and Raw Materials. Each has distinct handling characteristics, particularly in terms of timing requirements, quality standards, and operational risks.

Finished Goods: Precision Required, Minimal Margin for Error

Finished goods have typically gone through the entire production process and are ready to be delivered to end consumers or distributors. In a Just-In-Time system, these goods demand high time precision—any delay, even minor, can directly impact distribution timelines, lead to missed market opportunities, or cause financial losses.

Key Handling Characteristics of Finished Goods:

  • Lead times must be precise and controlled.
  • Typically well-packaged and ready for sale.
  • Highly sensitive to delays, especially in modern retail or e-commerce settings.
  • Require fast, secure, and real-time trackable transportation.

Raw Materials: More Flexible, But Prone to Quality Degradation

In contrast, raw materials still need to undergo processing. As such, their lead times tend to be more flexible, as long as they align with production schedules. However, this flexibility comes with risks—quality deterioration during transport, particularly for perishable or chemically sensitive materials.

Key Handling Characteristics of Raw Materials:

  • More lenient lead times but must align with production schedules.
  • Handling must consider the material’s physical conditions (temperature, humidity, vibration).
  • Quality risks if handling or storage standards are not met.
  • Often require additional documentation, such as MSDS (Material Safety Data Sheets) for hazardous materials.

The Key to JIT Success: Collaboration, Transparency, and Reliable Logistics Partners

The differing needs of finished goods and raw materials highlight that Just-In-Time is not merely about speed—it’s about accuracy and flawless execution. Companies, therefore, need logistics partners who can do more than move goods; they must understand the urgency and unique nature of each commodity.

SPIL: A Trusted Logistics Partner in the Just-In-Time Ecosystem

PT SPIL (Salam Pacific Indonesia Lines) offers a comprehensive end-to-end logistics solution designed to support industry players in implementing Just-In-Time systems. With an integrated sea-land delivery network, the MySPIL Reloaded digital platform, and real-time tracking services, SPIL ensures both time certainty and shipment flexibility for various commodity types—whether finished goods or raw materials.

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